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Colorado Workers' Compensation Requirements

Required from your 1st employee

✓ Verified 2026-09-08 Source: CO Department of Labor & Employment - Division of WC ↗ See something wrong? Tell us →

At a glance

1st

employee threshold (general)

construction threshold

Private market

buy from any carrier

CO Department of Labor & Employment - Division of WC

official source (verified 2026-09-08)

The details

1+ employees regardless of full/part-time. Workers presumed employees (IC test strict).

If a claim happens: benefit amounts in Colorado

$1,396.85/wk max weekly wage-replacement benefit (66 2/3% of preinjury wage)

Waiting period: 3 days · Duration: TTD while medically unable to work (no fixed statutory week cap; benefits convertible at MMI)

7/1/2025-6/30/2026: max $1,396.85 (91% of SAWW per CRS 8-42-105). Official CDLE TTD calculator: wc1.cdle.state.co.us Medical: No dollar cap — reasonable and necessary care for the injury. Death: Dependents 2/3 AWW capped at state max; burial allowance separate (see CDLE). Rate cycle: adjusts 07/01 each year. All states' benefit rates →

FAQ

Do I need workers' compensation in Colorado?

Yes — Colorado requires coverage as soon as you hire your first employee (full-time or part-time).

What about construction businesses in Colorado?

Construction businesses follow the same 1 threshold. See details below for industry nuances.

What if I don't carry required coverage in Colorado?

Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for Colorado's current enforcement posture.

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Official source: CO Department of Labor & Employment - Division of WC · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules